Correlation Between Globalfoundries and XMReality
Can any of the company-specific risk be diversified away by investing in both Globalfoundries and XMReality at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Globalfoundries and XMReality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globalfoundries and XMReality AB, you can compare the effects of market volatilities on Globalfoundries and XMReality and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Globalfoundries with a short position of XMReality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globalfoundries and XMReality.
Diversification Opportunities for Globalfoundries and XMReality
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Globalfoundries and XMReality is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Globalfoundries and XMReality AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XMReality AB and Globalfoundries is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Globalfoundries are associated (or correlated) with XMReality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XMReality AB has no effect on the direction of Globalfoundries i.e., Globalfoundries and XMReality go up and down completely randomly.
Pair Corralation between Globalfoundries and XMReality
If you would invest 0.91 in XMReality AB on November 3, 2024 and sell it today you would earn a total of 0.00 from holding XMReality AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.35% |
| Values | Daily Returns |
Globalfoundries vs. XMReality AB
Performance |
| Timeline |
| Globalfoundries |
| XMReality AB |
Globalfoundries and XMReality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globalfoundries and XMReality
The main advantage of trading using opposite Globalfoundries and XMReality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globalfoundries position performs unexpectedly, XMReality can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in XMReality will offset losses from the drop in XMReality's long position.| Globalfoundries vs. NXP Semiconductors NV | Globalfoundries vs. Analog Devices | Globalfoundries vs. ON Semiconductor | Globalfoundries vs. Lattice Semiconductor |
| XMReality vs. Parker Hannifin | XMReality vs. IPG Photonics | XMReality vs. Academy Sports Outdoors | XMReality vs. Sonos Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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